8/7/2019 g o d r e j 12345

1/28

8/7/2019 g o d r e j 12345

2/28

8/7/2019 g o d r e j 12345

3/28

8/7/2019 g o d r e j 12345

4/28

History Of Godrej

8/7/2019 g o d r e j 12345

5/28

VISION OF GODREJ

To eventually emerge as a World leader in providing total

Flexible Packaging solutions,

we need a customer focused approach.

The way to being a world class player is paved with state-of-

the-art facilities blended with world class practices.

8/7/2019 g o d r e j 12345

6/28

MISSION OF GODREJ

We believe in using our creativity and potential in providing

flexible packaging solutions.

packaging easier, faster, more efficient and user friendly.

In this way we too have a share in contributing to theconservation of resources by enhancing the shelf life of the

perishable products.

8/7/2019 g o d r e j 12345

7/28

OBJECTIVE

Their objective is to delight their customers both in

India and abroad.objective by re-engineering businesses and continuous

improvement in quality, cost and customer service.

They shall strive for excellence by nourishing,

developing and empowering their employees andsuppliers.

8/7/2019 g o d r e j 12345

8/28

8/7/2019 g o d r e j 12345

9/28

CORPORATE GOVERANCE

The corporate governance

framework of our organization is based on

an effective independent board and

separation of the boards supervisory role

from the executive management team. The

Board has twelve directors, out of which six

are independent directors with distinguished

careers in government, academia, business.

8/7/2019 g o d r e j 12345

10/28

GODREJ PRODUCTS

Godrej & Boyce Mfg. Co. Ltd: (Refrigerators, Washing Machines, Air Conditioners,Microwaves, and DVD Players), Locks, Furniture, Security Equipment and vendingMachine

.

Godrej Consumer Products Ltd (GCPL): Cinthol, Fairglow Hair Dyes Kesh Kala

Oil

Godrej Industries Ltd: refined oil and tetrapack fruit beverages

Godrej Infotech: Developing software solutions and implementing ERP, CRM, SCMsoftware.

Godrej Agrovet: animal feeds and innovative agri-inputs India.

8/7/2019 g o d r e j 12345

11/28

PRODUCTS

8/7/2019 g o d r e j 12345

12/28

TOPICS COVERED

Financial decisions

Cost of capital

Dividend analysis

Working capital management

Liquidity position

Cash management

Receivable management

Inventory manaement

8/7/2019 g o d r e j 12345

13/28

CAPITAL STRUCTURE

From

Year To Year

Class Of

Share

Authorized

Capital(cr)

Issued

Capital(cr)

Paid UpShares

(Nos)

Paid Up

Face Value

Paid Up

Capital(cr)

2008 2009 Equity Share 80.00 31.98 319758602 1 31.98

2007 2008 Equity Share 80.00 31.98 319758602 1 31.98

2006 2007 Equity Share 80.00 29.19 281851652 1 28.19

2005 2006 Equity Share 80.00 29.19 48641942 6 29.19

2004 2005 Equity Share 80.00 29.19 48641942 6 29.19

2003 2004

Equity Share80

.00 29

.19 48641942 2 9

.73

8/7/2019 g o d r e j 12345

14/28

COST OFCAPITAL

IT IS A CENTRAL CONCEPT IN FINANCIAL

MANAGEMENT

The Rate of return expected by the existingcapital providers. It reflects the business risk of

existing assets and the capital structure

currently employed.

cost of equity + cost of debt = cost of capital

8/7/2019 g o d r e j 12345

15/28

Cost OFequity or Ke=(div/po)+g)

particula

rs

Mar-

2005

Mar-

2006

Mar-

2007

Mar-

2008Mar-2009

Cost of

equity(Ke)

18.42% 14.43% 12.36% 6.42% 6.24%

8/7/2019 g o d r e j 12345

16/28

Cost of debt(kd)=interest/total

debt

partic

ulars

Mar-

2005

Mar-

2006

Mar-

2007

Mar-

2008

Mar-

2009interest 17.45 24.31 39.02 38.28 58.51

TOTAL

DEBT

256.33 327.14 467.69 435.67 600.96

Kd 6.80% 7.43% 8.3% 8.78% 9.73%

8/7/2019 g o d r e j 12345

17/28

DIVIDEND ANALYSIS

YEAR EPS DPS BV ROE(EP

S /BV)

DIVIDE

ND

PAYOUT

RATIO

RETENT

ION

PAYOUT

RATION

EQUITY

DIVIDE

ND

2005 15.58 4 6 2.59 22.81 74.03 66.66%

2006 14.62 5 6 2.43 29.59 37.68 83.33%

2007 2.65 1 1 2.65 33.60 31.65 100%

2008 3.33 1.25 1 3.33 35.43 39.27 125%

2009 0.58 1.25 1 0.58 103.59 -2.11 125%

8/7/2019 g o d r e j 12345

18/28

SHARE PRICE

8/7/2019 g o d r e j 12345

19/28

FINANCIAL LEVERAGE

PARTICU

LARS

Mar ' 05

YEAR

Mar ' 06

YEAR

Mar ' 07

YEAR

Mar ' 08

YEAR

Mar ' 09

YEAR

SALES 763.86 742.63 655.39 724.65 811.94

PBDIT 113.99 133.07 143.79 173.79 101.74

Interest 17.45 24.31 39.02 38.28 58.51

PBDT 96.54 108.76 104.77 135.51 43.23

FINANCIAL

LEVERAGE 1.18 1.224 1.372 1.282 2.353

8/7/2019 g o d r e j 12345

20/28

OPERATING LEVERAGE

PARTIC

U

LARS

Mar ' 05

YEAR

Mar ' 06

YEAR

Mar ' 07

YEAR

Mar ' 08

YEAR

Mar ' 09

YEAR

Sales Turnover 821.99 800.54 714.26 796.02 873.47

Total

Expenses696.67 703.90 661.23 637.22 818.91

contribution 125.32 96.64 53.03 158.8 54.56

PBDIT 113.99 133.07 143.79 173.79 101.74

OPERATING

LEVERAGE1.09 0.73 0.37 0.91 0.53

8/7/2019 g o d r e j 12345

21/28

WORKING CAPITAL MANAGEMENTPARTICULARS MAR- 05 MAR-06 MAR-07 MAR-08 MAR-

09

(crores) (crores) (crores) (crores)

(crores)

Inventories107

.52 118

.92 155

.15 197

.71 93

.56

Sundry

Debtors86.04 58.07 92.53 156.40 161.00

Cash and Bank

Balance6.41 4.06 5.29 3.11 2.42

Total

Current

Assets

199.97 181.05 252.97 357.22 256.98

8/7/2019 g o d r e j 12345

22/28

WORKING CAPITAL MANAGEMENT(contd..)

particularsMar-

2005(crs)

Mar-

2006(crs)

Mar-

2007(crs)

Mar-

2008(crs)

Mar-

2009(crs)Loans and

Advances54.73 84.79 111.23 167.35 167.60

Fixed Deposits 7.37 8.54 20.08 291.18 26.10

Total CA,Loans &

Advances

262.07 274.38 384.28 815.75 450.68

Current

Liabilities208.93 203.34 228.26 293.72 185.28

Provisions 49.48 52.02 66.44 85.53 77.95

Total CL &

Provisions258.41 255.36 294.70 379.25 263.23

Net Current

Assets 3.66 19.02 89.58 436.50 187.45

8/7/2019 g o d r e j 12345

23/28

INTERPRETATION

y MORE INVESTMENT ON FIXED DEPOSITS.

y LESS PROVISIONS.

8/7/2019 g o d r e j 12345

24/28

LIQUIDITY POSITIONparticulars MAR05 MAR06 MAR07 MAR08 MAR09

CURRENT

RATIO

0.81 0.80 0.72 1.18 0.67

RATIO

QUICK

0.55 0.58 0.75 1.60 1.31

DEBT

EQUITY

RATIO

0.84 0.94 1.19 0.42 0.59

LONG TERM

DEPT

EQUITY

RATIO

0.65 0.73 0.73 0.19 0.24

8/7/2019 g o d r e j 12345

25/28

INVENTORYMANAGEMENTYEARS INVENTORY TURNOVER RATIO

MAR05 7.35

MAR06 7.46

MAR07 5.05

MAR08 4.39

MAR09 10.89

8/7/2019 g o d r e j 12345

26/28

RECIEVABLEMANAGEMENT

YEARS DEBTOR TURN OVERRATIO (in percentage)

AVERAGE COLLECTIONPERIOD (in days)

MAR05 9.37 39

MAR06 10.31 35

MAR07 8.70 41

MAR08 5.82 62

MAR09 5.12 71

8/7/2019 g o d r e j 12345

27/28

CASH MANAGEMENTparticulars MAR05(cr) MAR06(cr) MAR07(cr) MAR08(cr) MAR09(cr)

Net Cash From

Operating

Activities

46.00 15.29 -8.99 50.30 44.50

Net Cash from

Investing Activities-40.61 -33.06 -51.52 -262.61 -367.59

Net Cash from

Financing

Activities

2.80 18.99 73.28 481.24 57.32

Net

decrease/increase

In Cash and CashEquivalents

8.20 1.21 12.77 268.93 -265.78

Opening Cash &

Cash Equivalents5.58 11.38 12.60 25.36 294.29

Closing Cash &

Cash Equivalents13

.78 12

.60 25

.36 294

.29 28

.51

8/7/2019 g o d r e j 12345

28/28

THANK YOU

PRESENTED BY:SUPRIYA

SWATHICHAYABAN

SUMEETTHILAK JAI